Japocalypse Wow - Foreigners Dump Most Japanese Stocks Since 2010

It would seem, in the case of momo-chasing levered fast-money flows, that Propertius was correct - "fickleness has always befriended the beautiful..." and Japanese stocks are no longer the once beautiful trend that Abe had promised them to be. A tapering of the US flow; a ripple across the bow of emerging markets; and suddenly Kyle Bass' sarcastically-named "macro tourists" are running for exitsas Shakespeare himself once wrote, "was ever feather so lightly blown to and fro as this multitude." Historical quotations aside, the last time flow swung so violently negative, the Nikkei ended up losing 55% in the next 18 months. We love the smell of nay-sayers in the morning...

Foreigners sold the most Japanese stocks last week since 2010 and before that since the credit crisis started to implode...

This outflow was 3x the size of the entire selling following the tumble in May/June last year.

and just in case you are banking on that flowing back to the US... think again - as we are trying to explain - it's not real money, it's credit-created leverage...

The ironists among market punters will even attempt to construe all this as a reason to buy more developed world stocks on the premise that the money flooding out of such places as Thailand, the Ukraine, Turkey, and Argentina will be parked in the S&P and the DAX (perhaps overlooking the fact that the purchase price of these now-unwanted positions was most likely borrowed, meaning that their liquidation will also extinguish the associated credit, not re-allocate it).

A gentle reminder of days gone by when rational investors roamed the markets...

This time it will be different. Japan will use HFT to save their asses. US market drops because the gov must give a reason for people to join MyRA. Only stock tanks, preious metal tank, forex too volatile, then people will settle nicely in the MyRA. Need more people in the MyRA to continue to buy notes and bonds.. This is the new QE.. QE civilians.

This time it will be different. Japan will use HFT to save their asses. US market drops because the gov must give a reason for people to join MyRA. Only stock tanks, preious metal tank, forex too volatile, then people will settle nicely in the MyRA. Need more people in the MyRA to continue to buy notes and bonds.. This is the new QE.. QE civilians.

No one wants to do business with a country that lies to the world about the horrible fukushima Extinction Level Event. Besides, anything that comes from japan is very radioactive, and too hot to handle. Who wants to invest in things that no one can buy? For over two and a half years, everything that has come from japan is a suspect of radiation contamination.

ummm...the theory that Japan Inc has been doing nothing while this still totally un-reported Fukushima disaster plays out is a total falsehoold.

The just bought Jim Beam for 12 billion.
That's another word for "hard money."

They've also been investing in a multitude of other dollar denominated and euro denominated "cash cows."

If successful this produces hard currency and will at least is doing something to protect the homeland. (financing the Beast.)

don't underestimate their ability to succeed.
Most Americans still buy Japanese cars for a reason: they're not worthless American CRAP that's "needs a bailout because creating the CRAP then screwing the taxpayer for it still isn't good enough."

We shall see if this is a beginning of a "beautiful friendship" or not...but Japan Inc. has done more to make the USA a better place than the bulk the American jerks have. Indeed if the USA turns into an industrial powerhouse again it will overwhelmingly be because the Japan, Korea...and perhaps a very nervous China...suddenly realize that Japan has a plan that really might in fact succeed.

It's not like Retard Russia is going anywhere anytime soon.
What does 50 billion get you Russia? Total CRAP apparently.

Your still a bit off, you can count on an American employee to try to screw up a better designed car and get paid with bennies to boot. So you still need more than just the better technology, you need to be able to avoid the scam that is the service industry today in America. First we sell, then we service is their motto, but the big bucks come from the servicing end.